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标题: Reading 16: Organizing Production LOS c习题精选 [打印本页]

作者: honeycfa 时间: 2010-4-16 22:04 标题: [2010]Session 4-Reading 16: Organizing Production LOS c习题精选

LOS c: Differentiate between technological efficiency and economic efficiency and calculate economic efficiency of various companies under different scenarios.

Ken Brobeck and Alice Magnuson are discussing the use of technology in production. They state the following:

Brobeck: If a firm has an opportunity to increase both its output and revenue by adopting new technology, it should do so.

Magnuson: If a production process is economically efficient, it must also be technologically efficient.

With respect to these statements:

A)
only Brobeck is incorrect.

B)
both are incorrect.

C)
only Magnuson is incorrect.

Brobeck is incorrect. A firm must incur costs to employ new technology. The firm should do so only if the additional revenue from adopting the technology is greater than the increase in costs.

Magnuson is correct. A production process is technologically efficient if there is no process that uses less of one input without using more of another input to produce a particular level of output. A process is economically efficient if it produces a given output at the lowest possible cost. A process cannot be economically efficient unless it is technologically efficient.

作者: honeycfa 时间: 2010-4-16 22:04

Technological and economic efficiency are most accurately described by which of the following statements?

A)
For a given level of output, technological efficiency uses the least labor and economic efficiency uses the least capital.

B)
For a given level of output, technological efficiency uses the least amount of inputs whereas economic efficiency has lowest possible cost.

C)
In order for an activity to be technologically efficient, it must be economically efficient.

Technological efficiency exists when the least amounts of possible inputs are used to produce a given level of output. Economic efficiency is producing a given output at the lowest possible cost.

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